Why is my offer on a house being ignored?

Worse, “Why is the agent refusing to present my offer?”

These questions are incredibly frequent in the online buyers’ forums from buyers frustrated with what they percieve as the agent's apathetic attitude to their interst.

Much more likely reasons are:

• The agent has been instructed by their client not to accept an offer under a certain value.

• The agent has presumed the buyer understands the offer process to a degree they clearly do not so hasn’t taken the time to explain the intricacies to the buyer.

• The offer the buyer self-submitted wasn’t completed properly and the agent intends to meet with them to remedy that but is waiting for their client’s instructions.

So, most likely, the disconnect can be attributed to some level of poor communication.

To minimise frustration, or feeling like you have to show your hand if you end up needing to chase the agent, it is advisable to control the variable you can.

The truth is...

You need to become the reason you are likely to succeed. That way their competence, won’t affect your outcomes.

Tips to control the process by capturing the vendor’s attention and agent's time are:

• If the agent says they have been instructed not to present offers below a certain value? Believe them & adjust accordingly. 

• If you suspect your budget may be too low, ask the agent if they think it is worthwhile trying. If they don’t, vendor motivation can change over time as their situation and goals do, so check-in at a later date and let the agent know what level you would be interested at so they can reach out to you if appropriate. 
  
  
• When making an offer research the sale price of similar properties on sites like homes.co.nz to give the agent some context to discuss with their client alongside your offer.

• Ask the preferred offer process. Self-drafted offers, especially in multiple offer situations, run significant risk of being eliminated for reasons a buyer would be willing to adjust if the agent provided alternatives, information the buyer wasn't aware of, or a compromise.

• Refine your online price parameters on sites like trademe.co.nz. The ‘likely projected sales range’ lies between where the property starts to appear and where it drops out of the search. The vendor is almost certainly hoping for the upper end of the range.

• If the method of sale isn't obvious (or seems complex), ask the agent in writing how it works. Visit settled.govt.nz for a deeper explanation. 

• Make sure the agent knows of your interest. It is disappointing for all parties when you miss your opportunity to make an offer. There is no obligation on a seller to wait for your offer to come in if they decide to proceed with another party so the more serious the agent thinks you are, the less likely it is you will miss out.

• If you are concerned that a delay will put you into a competitive situation, consider inserting a deadline for acceptance in your offer. However, if the agent is vocal about this being a bad idea, believe them – they know their client's situation and temperament. 

• A general "due diligence" condition is essentially a 'change of mind' condition. 
  From a vendor’s perspective, they significantly weaken an offer. In a competitive situation such as a multiple offer, it is possible your offer will be disregarded if it has a due diligence condition of long duration, or one at all. Consider asking the agent or your solicitor to draft specific conditions that allow you to check what you wish instead.

• A final tip would be to ask the settlement date the vendor prefers. More frequently than you would expect meeting a particular settlemnt timeframe is more valuable to the vendor than a little more money.

An offer drafted in the correct manner on the correct form with terms and conditions that the vendor favours at an amount that has been informed by research and an agent's guidance is a starting point that will always be engaged with by an agent. And if communication isn’t their strong suit, make it yours. At minimum, you will have an advantage over all the other buyers considering the property.